Real estate investment in Madrid: 11% IRR in Mirador de la Estación
Investors in the Mirador de la Estación project, located in Colmenar Viejo (Madrid), have now received the full repayment of their investment along with the accrued interest. The deal closed with an IRR of 11.04% and a CoC (cash-on-cash) of 13.5%, representing a total return of 113.5% on the initial investment.
In total, more than €4 million has been returned to investors.
What did the project involve?
Mirador de la Estación was a debt project launched in June 2024 to partially finance the acquisition of a plot of land in Colmenar Viejo, where a development of 45 single-family homes is planned.
The homes, all designed with 4 bedrooms, 3 bathrooms, living room, dining room, kitchen, and storage room, are distributed across two floors and feature private front and back gardens. They also include access to a communal swimming pool and large green areas, making the development an attractive option for families.
The plot is located in the southern area of Colmenar Viejo, next to the train station and just one kilometer from the town center, in an area surrounded by schools, hospitals, supermarkets, and sports facilities. It is one of the most sought-after areas in Colmenar Viejo thanks to its excellent connection with Madrid—20 km away via the M-607—and its proximity to the Cuenca Alta del Manzanares Regional Park.
Bridge loan with mortgage guarantee
To complete the land acquisition, Urbanitae investors granted a bridge loan of €4.19 million, with an initial term of 12 months and a fixed interest rate of 11%.
The loan was secured with several guarantees:
- First-ranking mortgage over the asset.
- Pledge of the bank accounts of the company owning the land.
The business plan envisaged that, once the building permit was obtained and 70% of the homes were pre-sold, the developer would secure a bank development loan to refinance Urbanitae’s debt and fund the construction.
Repayment after loan extension
When the initial term expired in July 2025, the building permit had not yet been granted, so the developer requested an extension of up to six months, which was approved by the investors. As consideration, the developer paid the interest for the first year upfront upon signing the addendum.
Finally, in August 2025 the building permit was granted, allowing the developer to close bank financing and repay Urbanitae’s loan ahead of schedule, without using the full extension. Investors also received interest corresponding to the additional period between July 8 and September 30, equivalent to 2.5% of the investment.
Commercial success
A key factor in the project’s strength was its excellent market reception: the 45 planned homes were fully sold during the permit application stage, which reinforced the developer’s position with banks.
Example repayment
For an investment of €1,000, the results were as follows:
- Principal repaid: €1,000
- Gross interest: €135 (11.04% IRR – 13.5% CoC)
- Tax withholding: 19% on interest
- Net repayment: €1,020.30 (after taxes)
A result in line with the business plan
From the outset, the Mirador de la Estación project was designed as a short-term bridge loan, and despite the need to extend the maturity, it closed successfully, meeting the target return and fully repaying capital and interest to investors.
With this repayment, Urbanitae adds another success story to its line of debt projects, reinforcing its track record of attractive returns with risk mitigated through real guarantees.
